BAE and EADS posted combined revenue of roughly $90 billion last year. Boeing is currently the world’s biggest aerospace company, with $68.7 billion in sales last year. The European duo’s combined military sales of $45.3 billion last year topped those of U.S.-based Lockheed Martin Corp, now the world’s biggest defense company.

Aetna, which is adding to its government-financed health-care options with the deal, is up 4% to $39.56, and earlier topped $40 the highest it has traded in a month.

Coventry, meanwhile, is up 18% to $41.35, just below the $42.08 offer and its highest point since June 2008.

Coventry mainly serves individuals, employers and government agencies through its network of insurance brokers. Aetna sees value in Coventry’s consumer-based lines, which are big in midsize and smaller markets where Aetna hasn’t focused, as well as in its government business.

Watson Pharmaceuticals’ $5.9 billion deal to acquire privately-held Actavis, forming a generic drug giant, is being well received, as Deal Journal noted earlier. Shares of Watson have opened up 7.4% at $74.70 after earlier hitting $75.95. That would mark an all time high according to Factset Research, when a 1997 stock split is taken into account.

About Deal Journal

Deal Journal is an up-to-the-minute take on the deals and deal makers that shape the landscape of Wall Street, including mergers and acquisitions, capital-raising, private equity and bankruptcy. In short, wherever money changes hands. Deal Journal is updated throughout each trading day with exclusive commentary, analysis, data, news flashes and profiles. The Wall Street Journal’s David Benoit is the lead writer, with contributions from other Journal reporters and editors. Send news items, comments and questions to deals@wsj.com.

Dealpolitik is Ronald Barusch's strategic look at deals currently making the headlines as well as the major forces at work in the deal-making world. He was a M&A lawyer with Skadden, Arps, Slate, Meagher & Flom for over 30 years. He retired in 2010 after 25 years as a partner at the firm. Click here for his current and archived columns.